An individual retirement account (IRA) is a tax-advantaged personal savings plan designed to help individuals save money for retirement. These accounts offer tax benefits, such as tax-deferred growth or tax-free withdrawals, depending on the type of IRA chosen. Unlike employer-sponsored 401(k)s, individuals typically open and manage IRAs on their own at a financial institution like a bank or brokerage. Anyone with earned income can open an IRA, even if they already have a workplace retirement plan.
An individual retirement account (IRA) is a tax-advantaged personal savings plan designed to help individuals save money for retirement. These accounts offer tax benefits, such as tax-deferred growth or tax-free withdrawals, depending on the type of IRA chosen. Unlike employer-sponsored 401(k)s, individuals typically open and manage IRAs on their own at a financial institution like a bank or brokerage. Anyone with earned income can open an IRA, even if they already have a workplace retirement plan.
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